Word of Mouth Marketing The Ripple Effect

Behaviours on the social web… CONTENT People have the tools and know-how to create and remix content and share it OPINION People’s conversations and opinions count more than ever now they are easily published online for all to see COMMUNITY People are connecting around passion and interests

Types of advertising trusted by internet users worldwide, April 2007 (% of respondents)

SO

Does it make sense to continue using traditional methods of advertising when…

Resulted in only1% - 2% increase in sales?

only14% trust ads only 18% of TV ads generate a positive ROI 69% of consumers are interested in ad blocking technology 91% are likely to buy on recommendation

… that 10% influence the purchasing behaviour of the other 90%

It’s time to harness peer to peer communication

The average person… Has 11-12 close contacts 150 - 200 SOCIAL contacts and 500 – 1,500 SOCIAL TIES

So what do the numbers really mean? but what does this mean?

but what does this mean? well

a network of 100 people could mean 4,950 possible links but what does this mean?

but what does this mean? BUT

a network of 1000 people but what does this mean? could mean 500,000 LINKS

but what does this mean? BUT This is the Six Degrees Of Separation concept.

but what does this mean? but how do we achieve this?

18 person-to-person talking talking by phone social media tools sms blogging IM e-mail vblog writing

Select the most influential group of consumers for your brand Develop a tailored engagement strategy Inspire the individual to feel part of the ‘inner circle’ Provide a suite of tools that allows that individual to interact and respond e.g. propagate and share The Hawthorn Effect: The more involved in the decision making process people feel – the more positive people are to the outcome. Create advocacy throughengagement Recruit Engage Enable Empower

web 2.0 web 3.0 social media facebook twitter digg technorati linked in stumbleupon de.li.ci.ous my space reddit blog flickr photos text rss google marketing word of mouth advantage social media PR social social social marketing marketing word of mouth word of mouth word of mouth word of mouth word of mouth word of mouth media media media media media media viral grassroots buzz

but what does this mean? Thanks to Ripple, Wikipedia and Napa Consulting for all data contained in this presentation. gcousens@tpg.com.au